UBS Group Cuts Automatic Data Processing (NASDAQ:ADP) Price Target to $210.00

Key Points

• UBS trimmed its price target on Automatic Data Processing to $210 from $220 and maintains a "neutral" rating, implying about a 7.5% upside from the prior close.
• Several other firms have lowered targets (Morgan Stanley, JPMorgan, Wells Fargo) while Guggenheim initiated with a "buy"; MarketBeat's consensus remains a Hold with an average target of $278.62.
• ADP recently beat quarterly EPS and revenue estimates, set FY2026 guidance of $10.091–$11.011 EPS, and authorized a $6 billion share repurchase (≈5.8% of shares), bolstering its fundamentals amid analyst cuts.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) had its target price reduced by analysts at UBS Group from $220.00 to $210.00 in a report released on Monday,Benzinga reports. The firm presently has a "neutral" rating on the business services provider's stock. UBS Group's target price indicates a potential upside of 7.48% from the company's previous close.

Other equities research analysts have also recently issued research reports about the stock. Morgan Stanley dropped their price objective on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating on the stock in a research note on Thursday, January 29th. JPMorgan Chase & Co. dropped their price objective on shares of Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating on the stock in a research note on Thursday, January 29th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Wells Fargo & Company decreased their target price on Automatic Data Processing from $262.00 to $214.00 and set an "underweight" rating on the stock in a research report on Friday, March 27th. Finally, Guggenheim assumed coverage on Automatic Data Processing in a research report on Thursday, March 19th. They set a "buy" rating and a $270.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $278.62.

Automatic Data Processing Stock Performance

Shares of NASDAQ ADP traded up $6.59 during midday trading on Monday, reaching $195.38. 3,029,093 shares of the stock were exchanged, compared to its average volume of 3,504,656. The firm has a market cap of $78.67 billion, a price-to-earnings ratio of 18.79 and a beta of 0.85. Automatic Data Processing has a twelve month low of $188.16 and a twelve month high of $329.93. The firm has a 50-day simple moving average of $213.06 and a two-hundred day simple moving average of $246.73. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, topping analysts' consensus estimates of $2.57 by $0.05. The business had revenue of $5.36 billion for the quarter, compared to analysts' expectations of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The business's revenue was up 6.2% on a year-over-year basis. During the same quarter last year, the company earned $2.35 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, analysts anticipate that Automatic Data Processing will post 9.93 EPS for the current fiscal year.

Automatic Data Processing declared that its Board of Directors has authorized a share repurchase plan on Wednesday, January 14th that permits the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization permits the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its stock is undervalued.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the firm's stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total value of $142,423.47. Following the transaction, the vice president owned 9,998 shares in the company, valued at approximately $2,622,375.42. This trade represents a 5.15% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP David Foskett sold 266 shares of the firm's stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the completion of the transaction, the vice president owned 10,954 shares in the company, valued at $2,596,098. The trade was a 2.37% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 2,352 shares of company stock worth $552,834. Corporate insiders own 0.20% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Imprint Wealth LLC purchased a new position in shares of Automatic Data Processing during the 3rd quarter worth $25,000. Cornerstone Financial Management LLC purchased a new position in shares of Automatic Data Processing during the 4th quarter worth $26,000. TruNorth Capital Management LLC purchased a new position in shares of Automatic Data Processing during the 3rd quarter worth $28,000. Bard Associates Inc. purchased a new position in shares of Automatic Data Processing during the 4th quarter worth $28,000. Finally, Cloud Capital Management LLC purchased a new position in shares of Automatic Data Processing during the 3rd quarter worth $29,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP's product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.

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